Figure 3-2

-Refer to Figure 3-2.Suppose Ben and Jerry have both decided to produce at point A on their respective production possibilities frontiers.We know that
A)neither Ben's well-being nor Jerry's well-being could be improved as a result of trade between the two.
B)trade between the two could benefit Ben but not Jerry.
C)trade between the two could benefit Jerry but not Ben.
D)Ben and Jerry are both allocating 1/2 of their time to the production of each good.

Question

Figure 3-2
 
-Refer to Figure 3-2.Suppose Ben and Jerry have both decided to produce at point A on their respective production possibilities frontiers.We know that
A)neither Ben's well-being nor Jerry's well-being could be improved as a result of trade between the two. 
B)trade between the two could benefit Ben but not Jerry. 
C)trade between the two could benefit Jerry but not Ben. 
D)Ben and Jerry are both allocating 1/2 of their time to the production of each good.

Quizplus · Accepted Answer

Point A on their production possibilities frontiers indicates that both Ben and Jerry are allocating equal time to the production of each good, assuming point A represents an equal distribution of resources.

Figure 3-2 -Refer to Figure 3-2.Suppose Ben and Jerry Have Both Decided